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Massachusetts staffing firm operator pleads guilty to tax crimes, insurance fraud

October 05, 2017

The operator of a temporary employment agencies providing labor for Massachusetts companies in agricultural industries pleaded guilty this week to 18 counts of willful failure to collect and pay over taxes to the Internal Revenue Service and five counts of mail fraud in connection with her evasion of workers’ compensation insurance premiums, the US Attorney’s Office reported.

From 2010 to 2015, Souleang Kane operated a series of temporary employment agencies under the names Expert Staffing, Affordable Staffing and M&K Temp Inc., according to the US Attorney’s Office. Kane evaded payment of more than $1.3 million in federal taxes by failing to report to the IRS approximately $4.3 million that her agencies paid in employee wages.

Kane also understated her business’ payroll in dealings with her workers’ compensation insurance providers which fraudulently reduced her workers’ compensation insurance by more than $100,000 between 2010 and 2015, according to the US Attorney’s Office.

Sentencing is scheduled for Jan. 9. Each count of failure to collect and pay over federal taxes provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Each count of mail fraud provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $250,000.